New Zealand Dollar: NZD/JPY May Rise Post RBNZ, Triangle Break?
The New Zealand Dollar may rise in the aftermath of the RBNZ rate decision, where the central bank offered hints at a rate hike during the second half of 2022.
It could capitalize particularly against the Japanese Yen, where the BoJ may remain more dovish in the long run.
NZD/JPY is attempting to break above an Ascending Triangle, where confirming the breakout could open the door to resuming the dominant uptrend towards peaks from 2018 and 2017.
Still, a key risk to the downside could be a material shift in market sentiment that fuels demand for the haven-linked Yen. But, ongoing easing and hesitation to taper from the Fed could keep market sentiment rosy for the time being.
Negative RSI divergence does warn that upside momentum is fading, which can at times precede a turn lower.
In the event of a drop, keep a close eye on the floor of the triangle as well as the 100-day SMA. These may reinstate the focus to the upside as key support.
NZDJPY
It could capitalize particularly against the Japanese Yen, where the BoJ may remain more dovish in the long run.
NZD/JPY is attempting to break above an Ascending Triangle, where confirming the breakout could open the door to resuming the dominant uptrend towards peaks from 2018 and 2017.
Still, a key risk to the downside could be a material shift in market sentiment that fuels demand for the haven-linked Yen. But, ongoing easing and hesitation to taper from the Fed could keep market sentiment rosy for the time being.
Negative RSI divergence does warn that upside momentum is fading, which can at times precede a turn lower.
In the event of a drop, keep a close eye on the floor of the triangle as well as the 100-day SMA. These may reinstate the focus to the upside as key support.
NZDJPY
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